Risk factor
Poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
Songwon Industrial Co., Ltd., a South Korean company founded in Ulsan in 1965, operates internationally, specializing in the development, production, and distribution of a wide array of chemical products. The company's extensive product portfolio is highlighted by its polymer stabilizers. These include various types of antioxidants such as phenolic, phosphite, thioester, and aminic compounds, alongside binary blends, customized solutions, hindered amine light stabilizers (HALS), UV absorbers, hydroxybenzoates, high and low melter blends, nucleator and clarifier blends, and highly loaded UV blends, some of which incorporate liquid components. Furthermore, Songwon offers a range of antioxidants tailored for fuels and lubricants, primarily in liquid form, encompassing phenolic, aminic, phosphite, and thioester varieties, in addition to fuel additives that act as stabilizers. Their offerings also comprise tin intermediates and a comprehensive suite of PVC stabilizers and plasticizers. This category features convenient one-pack systems for PVC stabilization, mixed metal and metal soap stabilizers, organo-tin stabilizers, auxiliary stabilizers, lubricants, and plasticizers themselves. The company is also a significant manufacturer of specialty polymers, providing polyester diols, thermosetting and/or thermoplastic polyurethanes, and super absorbent polymers. Additionally, Songwon produces specialized chemicals designed for rapidly evolving industries like electronics, alongside various coating additives and functional monomers. These diverse chemical solutions are sold under prominent brand names such as SONGCAT, SONGSTAR, SONGXTEND, SONGNOX, SONGSTAB, SONGSTOMER, SONGCIZER, HI-THANE, SONGCURE, SONGSORB, and HI-SWELL. Songwon's products serve a broad spectrum of industries, including adhesives, agriculture, automotive, building and construction, coatings, durable and consumer goods, electrical and electronic, fuels and lubricants, packaging, textiles and fibers, and wire and cable applications.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. In particular, the stock is reasonably priced on P/E, 'cheap' on E